Obamanomics 101 – Pop Quiz

obamanomicsPop Quiz

 

Problem 1:

Mr. Obama wants to help Mr. Patient pay for a medical device. Mr. Obama takes 1 dollar from ACME Medical Device Manufacturing company and gives it to Government Bureaucracy to give to Mr. Patient. Meanwhile, Mr. Edward’s agency causes liability and other costs to double the price with each transfer of the medical device. This makes the dollar Mr. Obama took from ACME manufacturing cost Mr. Wholesaler an additional 2 dollars, Mr. Retailer 4 dollars, and Mr. Patient 8 dollars.

The government bureaucracy takes 50 cents from the dollar it received from Mr. Obama for handling fees and gives the remainder to Mr. Patient.

To solve, explain how Mr. Patient pays for the 8 dollar price increase with the 50 cents he obtained from Government Bureaucracy. Please show all work.

 

Answer:

This is Progress, Chicago style.

There is a reason why nobody else taxes the manufacturer: the expenses are progressively increased each time the product is passed to the next step in the distribution chain to reach the consumer.

 

It is impossible for the Obamacare medical device tax to pay for any medical devices.

 

About the author: Kada

Born and raised in colorful Colorado, at 21 years old Kada has long understood that guns are capable of both destroying, and saving lives. She enjoys shooting AR's and Saiga's as much as anybody, but there's a special place in her heart for lever guns, single action revolvers, and air cannons. Her hobbies and interests include "muddin", target practice, camping, music, and almost any outdoor sport. So if you ever find yourself needing one more for paintball, she's your girl.

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